The Impact of Financial Inclusion on Income Inequality

All around the world, value of an inclusive financial system is prioritized. Since most Middle East and North Africa (MENA) region’s governments lacked sufficient formal services majority their populations access to conventional bank accounts, issue exclusion became increasingly important. Financial inclusion benefits not only individuals families but also entire communities as a whole can stimulate economy. This study’s objective evaluate impact on MENA income inequality. The aim this study investigate inequality region countries. To achieve aim, three-dimension Inclusion Index (FII) was created using Principal Component Analysis (PCA) measure each country’s level inclusion. These dimensions are access, usage, quality services. Data collected from 18 (Middle Africa) countries sample period 2004 2019. Based 2-step Generalized Method Moments (GMM) system, results showed that increase in leads decrease countries’